Auction of PIA will be held on October 1
Pakistan's Privatization Commission
Board has announced that Pakistan International Airlines (PIA) will be
auctioned on October 1, 2024, as part of efforts to privatize the debt-ridden
national carrier.
The decision follows a board meeting
to assess the progress of the sales process and align with recommendations from
the International Monetary Fund (IMF), which has urged the privatization of
loss-making state-owned entities to stabilize Pakistan’s economy.
Read More Global
aviation groups join Pakistan International Airlines sale bid
PIA has been struggling with a
massive debt of Rs800 billion ($2.9 billion) and has lost several profitable
routes in recent years. Despite multiple government bailouts, the airline's
operational expenses have continued to soar. The privatization process,
initially planned for August 14, was delayed due to bidders requesting access
to PIA’s latest audited accounts, aircraft lease agreements, and clarity on
suspended European routes, which have been grounded for nearly four years.
“The bidding for PIA’s privatization
is scheduled to take place on October 1, 2024,” the official statement
confirmed.
The board also reviewed
recommendations from its financial adviser, proposing adjustments to the
bidding criteria to streamline the sale. Six bidders have been pre-qualified
for the auction, including Fly Jinnah, a consortium led by YB Holdings, Air
Blue Limited, a consortium led by Pak Ethanol, Arif Habib Corporation, and Blue
World City.
Read More Six
companies selected to bid for PIA
This privatization process aligns with the IMF's broader recommendation to offload underperforming state-owned enterprises. The government is also working to restore PIA's flight operations to Europe, which were suspended in 2020 following a plane crash in Karachi that killed 97 people. The suspension was triggered by a statement from former aviation minister Ghulam Sarwar Khan, revealing that many Pakistani pilots held fake licenses, leading to a European Union ban on PIA flights.
Source: Arab News